Beaumont Medical Office Building
Etkin has been managing the Rochester Beaumont Medical Office Building for several years on behalf of the building’s physician-based ownership group. The building is anchored by Beaumont, which occupies approximately one third of the 30,000 square foot building.
Recently, Beaumont approached the ownership group to request significant tenant and capital improvements as part of negotiations to extend its lease. The group was faced with the challenge of recapitalizing the building to fund these improvements and lease commissions without requesting a capital call from the partners. Curtis Burstein was contacted to negotiate refinancing for the lease.
- Developed a capital budget to coincide with Beaumont’s requirements
- Obtained a new loan that would roll in the pre-payment penalty, closing costs, broker fees, as well as fund tenant/capital improvements and leasing commissions
- Created a lease structure that would enable the funding of tenant and capital improvements for the new loan structure
- Renegotiated Beaumont’s lease as well as other leases within the building to provide a strong income stream
- Stabilized tenancy in the building for 10+ years
- Obtained a non-recourse, self-amortizing 15 year loan with an aggressive interest rate
- Secured funding for capital improvements to upgrade the HVAC system and parking lot
- Maintained cash-flow and shareholder value
“The wonderful team at Etkin was instrumental in developing a long-term strategy for our building. The extensive experience of the Etkin team ensured the entire process was completed quickly and without significant issues.”
Stacey K. Richards, M. D. – Rochester Beaumont Medical Center